CJ Cheiljedang to Invest 800 Billion Won to Build New Facilities in Europe, U.S.

Seoul: South Korean food giant Cheiljedang Corp. announced plans to invest 800 billion won (US$571.3 million) in building new production facilities in Europe and the United States, aiming to boost its overseas sales.According to Yonhap News Agency, the company plans to establish a new plant near Budapest, Hungary, covering an area of 115,000 square meters. This facility, which is expected to start operations in the second half of 2026, will produce CJ Cheiljedang's flagship bibigo dumplings for European markets. Future expansions are planned to include bibigo chicken production. This will be the company's first production facility in Europe.The decision comes in response to the company's recent overseas sales growth, fueled by the increasing global popularity of Korean food and beverages. CJ Cheiljedang's overseas sales surged to 5.4 trillion won last year, up from 3.15 trillion won in 2019. The share of overseas sales in the company's total food sales also increased from 39 percent to 48 percent during t his period.CJ CheilJedang stated that the Hungarian plant will enable the company to better meet the rising demand for dumplings in Europe and serve as a strategic hub for expanding its European business into Central and Eastern Europe, as well as the Balkans. In the United States, its subsidiary Schwan's Company has commenced construction of an Asian food production facility in Sioux Falls, South Dakota. Scheduled for completion in 2027, this facility will produce egg rolls and dumplings for the bibigo brand.CJ CheilJedang aims to strengthen its leading position in the American dumpling market, where it currently holds a 42 percent market share. The U.S. remains the company's primary strategic market, accounting for over 80 percent of its overseas food sales, while Europe has emerged as a rapidly growing market with a 40 percent increase in sales in the July-September period of this year.To support its global expansion, CJ CheilJedang is actively increasing its production footprint. The company operate s 20 facilities in the United States and acquired Germany's Mainfrost in 2018. Additionally, it established local units in France and Hungary in May 2024.